Andor Technology, one of the North’s leading hi-tech companies, has warned that it could suffer “lower sales and profitability” as a result of the UK leaving the European Union.
The Belfast-based scientific digital camera manufacturer, which employs 276 people in the North, says it has identified a number of “Brexit-related risks” to its business including the possibility of barriers to existing free movement of goods and services in the EU.
In its latest set of annual accounts, Andor detailed the potential impact of the UK’s exit from the EU on its operations and highlighted that not only could it be exposed to supply chain disruption but it might also face the loss of key skills and increased recruitment or salary costs.
Key suppliers
According to Andor, it has adopted a number of strategies to “mitigate” the risks posed by Brexit. These include putting in place long-term pricing agreements for key suppliers, market diversification and a renewal of a UK permit scheme to facilitate employment of non UK/EU nationals.
It has also applied for “Authorised Economic Operator” status, which is issued by customs administrators in the EU, to protect its international supply chains. The company, which is part of the London-listed Oxford Instruments Group, reported a jump in both overall revenue and pre-tax profits over the 12 months to the end of March 2019, according to its latest financial accounts.
Andor Technology’s revenue grew by more than £11 million (€12.9 million) to £75.2 million for 2019 while pre-tax profits also jumped from £9.5 million in 2018 to £14.6 million last year.
Closed branches
The company has a significant number of customers outside of the UK and its accounts note that its most profitable regions last year were APAC and the Americas, where sales hit more than £26 million in both territories.
Andor confirmed that it closed its branches in Japan and America in March last year and said that the trade and net assets of these branches had been transferred to newly-created subsidiaries.
Overall, Andor ended the year with cash balances of £17 million, significantly down from £28.4 million a year earlier. Employee expenses increased to £16 million – up from £14.9 million.
